Savannah Resources PLC (LON:SAV) said it has been able to continue with many key activities on its projects, including finishing the environmental impact assessment at the Mina do Barroso lithium project in Portugal, and continuing with advanced negotiations with potential partners in the face of the coronavirus (COVID-19) pandemic.
Meanwhile, at the Mutamba mineral sands project in Mozambique the company is reviewing data from the recent pre-feasibility study (PFS) related fieldwork, and continuing discussions with partner Rio Tinto plc (LON:RIO) regarding PFS project scope.
And in Oman, a strategic review continues, as do discussions with potential acquirers of the projects.
The company said it had a cash position of £3.5mln at the 2019 year-end, and has no debt. This is sufficient to maintain current work programmes
However, budgets are being reviewed in light of the pandemic and working capital will be closely managed, with cash conservation plans being implemented.
David Archer, Savannah's chief executive officer said in a statement: "We highlighted in our 2019 Annual Results, released on 18 March, that Savannah had already taken prompt action to protect its staff and other project stakeholders against the threat of the coronavirus pandemic. In many cases, our decisions to close offices and cease work in the field were taken in advance of the relevant government guidelines being issued.”